Less demand for higher priced houses

10/12/2009 15:00

Houses prices (excl. new construction) were 20 thousand euro lower on average in October 2009 than twelve months previously. This substantial drop was the result of lower prices for the houses themselves; added to this, however, relatively fewer expensive houses were sold. In October 2009, the average price of an existing home in the Netherlands was 240 thousand euro. Twelve months previously it was 260 thousand euro.

House prices (excl. new construction) and average price

House prices (excl. new construction) and average price

Cheaper houses sell well

The average price of homes sold on the market was 7.8 percent lower in October this year than twelve months previously. There are two reasons for this. First, new owners paid 5.2 percent less for a house than twelve months previously. And secondly there was a shift in the types of homes sold: from expensive to cheap. Higher sales of cheaper homes tempered the average house price by another 2.6 percent.

House prices stabilising

The average price fell substantially from January to August. In August 2009 buyers paid just over 230 thousand euro on average for an existing house. This was the lowest amount since March 2006. Since then the average house price has been creeping up again. As house prices remained about constant in September and October, the increase in the average price indicates that demand for expensive houses in the higher price classes is picking up.

Erna van der Wal